ESPN Broadcasts Sports around the World
Bill Rasmussen made a big mistake in 1979. He had decided to launch a Connecticut-based cable TV station to broadcast local sports. So he and his partners leased a building and bought some satellite time. After they signed the agreement, they discovered that their satellite coverage was national, not local—and the idea for a regional cable sports station began to grow. New England, they thought, would be the perfect sports market for the new Entertainment and Sports Programming Network. Later, when business really got rolling, Rasmussen and his partners shortened the name to ESPN—and it stuck.
ESPN long ago leaped its New England borders into national coverage and ultimately extended its reach to covering sports and broadcasting them globally, although the company’s headquarters remained in Bristol, Connecticut, where the original building was leased and where they still operate today. Headquarters now includes several buildings, 28 satellite dishes, and 3,200 employees. ESPN operates 6 networks in the U.S. and 25 international networks, reaching between 150 and 155 million households globally. The company also produces ESPN Radio, ESPN Wireless, several Web sites including ESPN.com and ESPNSoccernet. com, magazines, and books, and it is exploring emerging technologies like video on demand and interactive TV. Spanish-speaking viewers can watch ESPN Deportes 24 hours a day. ESPN fans can eat at the ESPN Zone restaurant and buy merchandise at TeamStore@ESPN. Collectively, the ESPN media outlets offer coverage of local sporting events as well as major tournaments like the PGA Championship and the British Open for golf and the America’s Cup sailing races—not to mention games of the NFL, NHL, MLB, WNBA, and various college sports. In addition to the game coverage, it offers sports news and analysis; information on scores, statistics, standings, and schedules; and just about any other sports-related content the enthusiast could want.
Reaching out for the global market was something that ESPN founders did “on gut feeling,” says Willy Burkhardt, managing director of ESPN International. Because cable television was still new when ESPN was born, not much data existed on who was watching what around the world. But ESPNs executives had the idea that sports, like music and major news stories, had universal appeal. So they decided to try broadcasting American sports events in South America. Today, South and Central America—particularly Argentina, Brazil, and Mexico—represent 40 percent of ESPN’s total business. And although the firm continues to broadcast American sports overseas, it now places much greater emphasis on local and regional programming based on the tastes and preferences of the host cultures. For example, says Burkhardt, in India “cricket is a total culture.” While few Americans are familiar with the sport, millions of Indians are glued to the TV for cricket matches. In Argentina, rugby and polo occupy prime-time coverage. Major markets such as Argentina and India command their own ESPN offices and on-air announcing teams. In addition to South America and Asia, ESPN has a presence in Europe, Canada, Australia, and New Zealand—and even a station in Antarctica.
ESPN has used a variety of methods to enter international markets. In Europe, ESPN has had a longstanding partnership with EuroSport, which means that, although many European consumers watch sports on cable television, they are not necessarily aware of the ESPN name. However, recently ESPN did launch ESPN Classic Sport, a network dedicated to the greatest moments of European sporting history. ESPN operates in Canada through partnerships, as well. These arrangements are partly due to varying regulations in different countries and regions. But in Asia, ESPN has a large operation of its own, broadcasting to about 25 countries on the continent, including India, which is one of the firm’s most important markets.
ESPN continues to grow in international markets because its managers believe they can bring “a new century of sport” to viewers around the world. “You learn by doing,” says Burkhardt. ESPN wants viewers worldwide to watch what it is doing.
1. Describe three barriers to ESPN as it expands in the global marketplace.
2. How might NAFTA and the European Union affect ESPN in those areas?
3. Describe the levels of involvement ESPN uses in its different international markets.
4. Does ESPN adopt a global business strategy or a multidomestic business strategy? Explain your answer.
